Zomato shares fell as much as 10% in opening deals on the BSE, as the stock saw massive block deals.
Shares of Zomato Ltd fell as much as 10% on the BSE in Wednesday’s opening deals after an unnamed shareholder offered to sell 612 million shares at a discount, matching Uber Technologies’ stake of 612.2 million shares in Zomato, according to Bloomberg data.
According to the terms of the deal seen by Bloomberg News late Tuesday, the selling shareholder in the block trade offered the stock at between $48 and $54 per share, a more than 13 percent discount from the previous day’s closing price. The block trade’s sole bookrunner is BofA Securities. The potential seller was not identified in the term sheet. According to Reuters, Uber is the likely seller of a 7.8 percent stake in Zomato being sold in a $373 million block deal.
On Tuesday, Zomato shares rose the most since its debut session last year, as a number of block trades occurred following the release of its quarterly performance report. The end result was a smaller-than-expected loss and revenue that met analyst expectations.
Due to higher income, its consolidated net loss nearly halved to 186 crore in the first quarter of the current fiscal year. In the previous fiscal year, the company reported a net loss of 360.7 crores.
Deepinder Goyal, Managing Director & Chief Executive Officer, informed shareholders in a letter that the company has no plans to make any more minority investments because it is in cash conservation mode and is too busy executing what it already has on its plate.
Zomato Ltd., the food-delivery company that went public last year, is appointing CEOs to at least four of its key business units and plans to rename itself Eternal Ltd. after receiving approval to acquire another delivery startup.
